Legal Question in Business Law in California
I am looking to start a non-profit traveling youth baseball team. I was wondering the pros and cons of making the team non-profit, or if I should pursue a different option?
2 Answers from Attorneys
Non profit status means the operators can not make substantial salaries, but the organization can take charitable donations for their expenses. If instead you are doing this to make yourself money, then set it up as a for profit. If and when you are serious about doing this, feel free to contact me for the legal help you'll need.
The answer above does a good job of explaining key aspects of being a non-profit. Two points: (1) Once money or an asset is in a non-profit you can not take it out (nuances to this but I want to make this critical point. Have had clients devote whole lives to non-profit and have no money themselves.) (2) Where a relationship does not have a disclosed prinicpal (like the company) then the individual agents are liable. Put in English this means that you could be peronsally liable for injuries, etc. unless you form some type of entity. Hope this helps.
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